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Mar 31, 2024

LabCorp Q1 2024 Earnings Report

Labcorp's performance set a strong foundation for the year ahead, driven by organic revenue growth, strategic acquisitions, and expansion of the test menu.

Key Takeaways

Labcorp announced its first quarter 2024 results, with revenue increasing by 4.6% to $3.18 billion. Diluted EPS grew to $2.69, and adjusted EPS reached $3.68. The company updated its full-year guidance, raising the midpoint and narrowing the range of adjusted EPS to $14.45 to $15.35, while free cash flow is expected to remain between $1.00 billion and $1.15 billion.

Revenue increased by 4.6% to $3.18 billion, driven by organic revenue growth and acquisitions.

Diluted EPS increased to $2.69, and adjusted EPS increased to $3.68.

The company updated its full-year adjusted EPS guidance to $14.45 to $15.35.

Labcorp advanced key growth initiatives, including acquisitions and expansion of its test menu.

Total Revenue
$3.18B
Previous year: $3.78B
-15.9%
EPS
$3.68
Previous year: $3.82
-3.7%
Net Orders
$2.83B
Previous year: $7.15B
-60.4%
Backlog
$7.9B
Previous year: $16.6B
-52.5%
Gross Profit
$837M
Previous year: $975M
-14.1%
Cash and Equivalents
$99.3M
Previous year: $394M
-74.8%
Free Cash Flow
-$164M
Previous year: $27.3M
-699.3%
Total Assets
$16.5B
Previous year: $20.2B
-18.2%

LabCorp

LabCorp

LabCorp Revenue by Segment

Forward Guidance

Labcorp updated its 2024 full year guidance to reflect its first quarter performance and full year outlook. Adjusted EPS is expected to be in the range of $14.45 to $15.35, and free cash flow from continuing operations is expected to be between $1.00 billion and $1.15 billion.

Positive Outlook

  • Revenue growth driven by base business and acquisitions.
  • Continued expansion of test menu and innovative solutions.
  • Strong position as a partner of choice for health systems and regional/local laboratories.
  • Focus on science, technology, and innovation to meet evolving patient needs.
  • Commitment to delivering value for customers, shareholders, and employees.

Challenges Ahead

  • Potential impact of foreign exchange rate fluctuations.
  • Uncertainties related to the completion and timing of the holding company reorganization.
  • Impact of global geopolitical events.
  • Changes in government regulations, including healthcare reform.
  • Adverse weather conditions.

Revenue & Expenses

Visualization of income flow from segment revenue to net income